Trust sector hits all-time narrowest discount in H1

Half-year report from Stifel

The investment trust sector outperformed the wider market over H1 2017 and reached its all-time tightest discount of 3.6% in April, according to the latest report by investment company analysts Stifel.

It was a good first half to the year for investment companies as the sector (ex 3i Group) delivered a total return of 9.2%, outperforming the FTSE All-Share return of 5.5%. The average discount narrowed from 5.9% to 4.1%, with a range between 6.6% and 3.6% - this being the tightest the sector has ever recorded. Stifel said: "We believe this is due to the increased weighting of alternative funds, which are trading at significant premiums, and funds using discount control mechanisms and other measures to enhance shareholder value."  Corporate actions help push trust discounts towards...